Prices for products and shipping

Assignment Help Business Economics
Reference no: EM13960987

Problem 1: Unipart, a manufacturing of auto parts, is considering two B2B marketplaces to purchase its MRO supplies. Both marketplaces offer a full line of supplies at very similar prices for products and shipping. Both provide similar service levels and lead times.

However, their fee structures are quite different. The first marketplace, Part4u.com, sells all of its products with 5 percent commission tacked on top of the price of the product (not including shipping). AIIMRO.com pricing is based on a subscription fee of $10 million that must be paid up front for a two-year period and a commission of 1 percent on each transaction's product price.

Unipart spends about $150 million on MRO supplies each year, although this varies with their utilization will keep MRO spending at $150 million. However, there is a 25 percent chance that spending will drop by 10 percent. The second year, there is a 50 percent chance that the spending level will stay where it was in the first year and a 50 percent chance that it will drop by another 10 percent. Unipart uses a discount rate 20 percent. Assume all costs are incurred at the beginning of each year (so Year 1 costs are incurred now and Year 2 costs are incurred in a year).

Problem 2: Weekly demands at Hot Pizza are as follows:

Week

Demand ($)

1

108

2

116

3

118

4

124

5

96

6

119

7

96

8

102

9

112

10

102

11

92

12

91

Estimate demand for the next four weeks using a four-week moving average as well as simple exponential smoothing with α = 0.1. Evaluate the MAD, MAPE, MSE, bais, and TS in each case. Which of the two methods do you prefer? Why?

Reference no: EM13960987

Questions Cloud

Economic crisis-laying off mid-level managers and cut cost : Economic Crisis: -laying off mid-level managers -increase work load of their remaining employees in order to complete the task -rely more heavily on new employees with less experience Economy recovered: -slowly began to hire new employees -experience..
Mary midgley specific arguments against moral isolationism : QWhat are Mary Midgley's specific arguments against "Moral Isolationism"? (Note, you have to define "Moral Isolationism"). Is Moral Isolationism the same as Ethical Relativism (Barry & Shaw)
How current affected if number of charge carriers decreases : A 30 ohm resistor dissipates 500W of power. What current is running through the resistor?
Define the employment-at-will doctrine : Define the employment-at-will doctrine and defend it as fair to both the employee and the employer, using at least four (4) criteria. Give your reasoning as to two (2) instances that could constitute employer misuse of the doctrine.
Prices for products and shipping : Problem 1: Unipart, a manufacturing of auto parts, is considering two B2B marketplaces to purchase its MRO supplies. Both marketplaces offer a full line of supplies at very similar prices for products and shipping. Both provide similar service lev..
How would the force exerted by the magnetic field be shows : A magnetic field is represented by a group of exes on the page, with an arrow to the right representing the velocity of a proton. How would the force exerted by the magnetic field be shows?
Opportunity to replace inventory : A product is stocked for a single period only—there is no opportunity to replace inventory. The company would like to target a service level of 0.975 for this item. If demand is believed to be normally distributed with a mean of 15,000 and a standard..
Which type of cost system-process or job order : Which type of cost system, process or job order, would be best suited for each of the following: (a) TV assembler, (b) building contractor, (c) automobile repair shop, (d) paper manufacturer, (e) custom jewelry manufacturer? Give reasons for your ans..
Effective contingency planning in strategy evaluation : Describe the seven-step process of effective contingency planning in strategy evaluation.

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate the profit maximizing number of hamburgers

You own a hamburger stand, “Two Guys”. (You don’t have any partner, but “Two Guys” sounds better than “One Guy” or “Just a Guy”.). Your specialty is delicious cheeseburger that you sell for $6.50 a piece. The cost of ingredients for each cheeseburger..

  Elucidate why might an economist be skeptical of billy

Elucidate why might an economist be skeptical of Billy's discrimination complaint. Billy works for the local piano-moving company part-time after school.

  Legislative bodies across the united states

From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers. what would be the no pecuniary cost of legislation that would place a $1.50 cap on the ..

  Identify the resulting consumer and producer surplus using

Identify the resulting consumer and producer surplus using the "Final" (surplus) shader tool.

  Illustrate what should the us congress - federal reserve

Illustrate what should the U.S. Congress and the Federal Reserve do about it. Write your individual answers to both questions listed above together not each minimum 300 words in essay format in APA style.

  Qthe news reports which the exchange rate for the dollar

q.the news reports which the exchange rate for the dollar just hit its lowest value in a decade it also reports which

  Discuss the achievements and failures of each of these round

In their last half-century there have been three additional rounds of GATT/WTO negotiations. Discuss the achievements and failures of each of these rounds, and summarize.

  If the total cost of producing two pounds of cheese

If the total cost of producing 2 pounds of cheese is $6 and the total cost of producing 4 pounds of cheese is $8, then:

  What is your own view on poverty

What is your own view on poverty and Do you consider your view to lean towards the liberal or conservative view of poverty?

  Economy is on balanced growth path

Suppose the economy is on a balanced growth path in the Romer model, and then, in the year 2030, research productivity rises permanently to ¯ z ′ > ¯ z . Why might the parameter ¯ z increase in an economy?

  Connecticut recently reported that it expects pension funds

Connecticut recently reported that it expects its pension funds to earn 8% or more per year. This is highly optimistic. What behaviors might their pension fund managers engage in in order to get these returns?

  Indicate the various components of gdp when it is derived

Indicate the various components of GDP when it is derived by the resource cost-income approach. Calculate using the resource cost-income approach.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd